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Author: IsleGirl2010 Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127  
Subject: 2.8 million shares Date: 6/10/2008 10:12 AM
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Walter Industries begins offering 2.8 million shares
By Sue Chang
Last update: 4:39 p.m. EDT June 9, 2008
SAN FRANCISCO (MarketWatch) -- Walter Industries Inc. (WLT:
Walter Industries Inc

WLT 93.56, -1.76, -1.8%) has started offering 2.8 million of its common stock, the producer and exporter of metallurgical coal said late Monday. The company expects to grant to the underwriters an option to purchase up to an additional 420,000 shares within 30 days. Walter Industries intends to use the net proceeds from the offering to mostly repay outstanding debt. Morgan Stanley, Banc of America Securities LLC and SunTrust Robinson Humphrey are acting as joint book-running managers for the deal.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b3A6...
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Author: IsleGirl2010 Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 110 of 127
Subject: Re: 2.8 million shares Date: 6/10/2008 10:13 AM
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Can someone comment on this? I thought paying down debt would be good. Is it bad because stocks are worth less now?

IG

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Author: GrampaJayBee One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 111 of 127
Subject: Re: 2.8 million shares Date: 6/11/2008 8:45 AM
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Paying down debt = good

Diluting stocks = bad

In this case the bad is greater than the good = drop in value.

However, long term it is probably a good management move so for us buy and hold types = very good.

JMHO

Grampa

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Author: IsleGirl2010 Three stars, 500 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 112 of 127
Subject: Re: 2.8 million shares Date: 6/11/2008 11:06 AM
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Thank you for your answer, Grampa.

I do have another question about them offering at $90.75. Is this what they're selling for? That is below market at this point.

I'm confused as to how this works. Someone please enlighten me.

Thank you in advance for your response.

IG

Walter Industries prices offering at $90.75 apiece
Wednesday June 11, 8:43 am ET
Walter Industries prices offering of 2.8M shares at $90.75 apiece; proceeds to pay down debt

TAMPA, Fla. (AP) -- Coal producer Walter Industries Inc. said Wednesday it priced a previously registered offering of 2.8 million shares at $90.75 apiece.

The company expects to receive about $243.8 million from the offering, and will use the proceeds to pay down some of its debt.

Walter has granted its underwriters an option to buy up to an additional 420,000 shares.

Morgan Stanley, Banc of America Securities LLC and SunTrust Robinson Humphrey are joint book-running managers for the offering, while Raymond James, Morgan Keegan & Company, Inc., Avondale Partners, Brean Murray, Carret & Co. and Davenport & Company LLC are co-managers.


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